UPI vs IMPS: How do these two instant payment methods differ in usage and features?

tech.hindustantimes.com:

In India's digital payments landscape, UPI (Unified Payments Interface) and IMPS (Immediate Payment Service) stand out as major methods for real-time money transfers. Both systems enable instant transactions but cater to different needs and use cases.

UPI functions as a mobile-centric system, allowing users to make transfers using UPI IDs or phone numbers. It offers a broad range of financial services beyond just transferring money, including bill payments, QR code transactions, and integration with various third-party apps.

IMPS, by contrast, focuses on transferring funds between bank accounts using specific details like account numbers and IFSC codes. It can also use mobile numbers with the Mobile Money Identifier (MMID). Transactions through IMPS are processed via bank apps or online banking platforms.

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UPI provides a straightforward and user-friendly experience, especially for person-to-person transactions. Users can make payments without needing extensive banking details, streamlining the process.

IMPS typically requires more detailed account information, such as account numbers and IFSC codes, which can make the transaction process more formal and detailed.

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A significant advantage of UPI is its interoperability. UPI IDs are universally compatible across all banks and platforms, eliminating the need to know the recipient's bank account details. In contrast, IMPS requires specific bank account information, which limits its versatility compared to UPI.

UPI generally allows for a daily transaction limit of ₹1 lakh, though this limit can vary by bank. IMPS, on the other hand, typically supports higher transaction limits, ranging from ₹2 lakhs to ₹5 lakhs, depending on the bank.

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UPI